Netflix Inc. shares (NFLX) are up nearly 9% in Monday trading after Baird analyst William Power upgraded the stock to outperform from neutral, writing that the company was likely to be a "key beneficiary" of the COVID-19 outbreak, which has forced the cancellation of live sporting events. "Netflix's view that it continues to take share from linear TV never looked truer," Power wrote. "While not surprising given COVID-19 impacts, our survey results and other checks suggest strong current subscriber trends. Whereas we had previously been concerned with pricing power due to new entrants like Disney (DIS), Apple (AAPL), etc., we believe the narrative could shift towards greater revenue leverage from subscriber upside." Power upped his price target on the stock to $415 from $350 in conjunction with the upgrade. Other stay-at-home stocks, including those of videogame publishers Activision Blizzard Inc. (ATVI), Electronic Arts Inc. (EA), and Take-Two Interactive Software Inc. (TTWO) as well as streaming pure-play Roku Inc. (ROKU), are also up sharply in Monday's session. Netflix's stock has lost 4.7% over the past month as the S&P 500 has dropped 31%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 23, 2020 13:19 ET (17:19 GMT)
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